Read the Price Action (How PRO Traders make Money)

Read the Price Action (How PRO Traders make Money)

Read the Price Action (How PRO Traders make Money) 300 169 Minimalist Trading – Best Trading Indicators for TradingView

Being able to read the Price Action correctly is one big step towards becoming a Full-time trader.

Many beginner traders often see Price Action movements as unexpected and unjustified, especially when it means that their trades get closed with a loss.

However, the Price Action plays a big role in identifying the best setups.

But do not believe that the Price Action alone is enough, as we discuss in this article.

So, what’s the truth?

Of course, you need to be able to correctly identify many Price patterns that often form on the chart.

But then you need to combine the Price Action with a few quality Trading Indicators.

Why?

The answer is in today’s live trade on our TradingView chart that you can re-watch below.

In fact, before even looking at the indicators, we can clearly identify a possible short-selling setup just by looking at the Price Action (and the most recent price structure).

Then, we use the Trading Indicators to look for confirmation, not only of a Trading Setup but also of a High Probability Trade!

In this case, both the Bottoms Tops Signal and the RSI Exhaustion, confirm our technical analysis and so we open the trade.

Trade setup – 30 Mar 2020

Remember to always read the price action Setup 2

Our TradingView indicators confirm that we have a sell setup on EURUSD. That’s because:

    1. There’s a divergence between the price, which keeps rising, and the RSI Exhaustion, which is pretty much flat
    2. The RSI Exhaustion is bullish exhausted, which means that the price doesn’t have too much room to move any higher
    3. We have a confirmed top

Since we have a Short Selling setup, we set the Stop Loss a bit higher than the most recent highest price.

And then we set the Take Profit all the way down where we identify some price structure.

Trade update – 1 Apr 2020

Remember to always read the price action Setup 3

The price is moving lower.

Trade closed – 3 Apr 2020

Remember to always read the price action Setup 5

Target reached.

The price went down to target without creating any big concern, for a total profit of more than 2.6x.

If you’re looking for a way to become consistently profitable, you can now understand how critical it is to be able to read Price movements correctly.

And then combine the Price Action analysis with consistently reliable indicators like the ones that we used here.

What about you?

Do you entirely rely on Price movements and patterns when you’re trading?

Or do you combine Price Action trading with quality Trading Indicators?

Feel free to share your usual trade approach with fellow traders by leaving your comment on the YouTube video above!